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bigduckontax, Accountant
Category: Tax
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I have to sell about £50,000 of shares most of which were bought

Customer Question

i have to sell about £50,000 of shares most of which were bought in 1993 and 1995.
How do I work out the capital gain
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith one of the experts on Just Answer and happy to assist you with your question. The full guidance of how to calculate the gain can be found at the Gov UK web site here: https://www.gov.uk/tax-sell-shares/work-out-your-gain The capital gain on each share is calculated as follows. You have an acquisition and a disposal price. You will, presumably, have contract notes for the purchase and disposal. Take the net sum received and the gross sum paid and the difference is the profit or the loss. For Capital Gains Tax (CGT) purposes gains may be off set by losses and furthermore you have an Annual Exempt Amount of 11.1K to offset the net aggregated gains. If you have not got the purchase contract notes then you will need to source the prices from say: http://www.investopedia.com/ask/answers/117.asp Watch out for rights and bonus issues inflating your stock of initial purchases from years ago. In fact it is not that difficult, just laborious. Time for the wet towel round the head and lots of the backs of used envelopes. I would suggest that as you work through you maintain a record on a spread sheet. That is how I used to do it when I dabbled in the stock market. I do hope that my reply has shown you a way forward with your problem.
Customer: replied 2 years ago.

I am sorry but it does not answer my query. nothing about effect of inflation nor whether I have a free value

John Webster

Expert:  bigduckontax replied 2 years ago.
Relief for inflation is long gone which is why I did not mention it in my answer. I did tell you about 'free value;' the Annual Exempt Amount of 11.1K, a 'use it or loose it' [HMRC speak] allowance. This offsets any gain made.
Expert:  bigduckontax replied 2 years ago.

I am astonished at the poor rating. I have told you what you must do when you sell shares and answered your follow up questions quickly.

Surely I am entitled to a higher rating?

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you for you excellent support.

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